South Korean Trade, Industry and Energy Minister Lee Chang-yang and Indonesian Investment Minister Bahlil Lahadalia signed a memorandum of cooperation after the South Korea-Indonesia summit on July 28.According to the memorandum, the two states will increase investment, exchange and technology shari
The authors are analysts of Shinhan Investment Corp. They can be reached at jinmyung.lee93@shinhan.com and cgh815@shinhan.com, respectively. -- Ed. 2Q22 OP meets expectations at KRW878.5bn (-14% QoQ)LG Chem posted operating profit of KRW878.5bn (-14% QoQ) for 2Q22 in line with the consensus estimate
The author is an analyst of KB Securities. He can be reached at moonjoon.chang@kbfg.com. -- Ed. 2Q22 review: OP in line with consensus on robust revenue despite extra costs of KRW60.0bn — Samsung Engineering posted 2Q22P consolidated revenue of KRW2.5tn (+47.0% YoY, +15.3% QoQ), OP of KRW153.5bn (+2
The author is an analyst of NH Investment & Securities. He can be reached at minjae.lee@nhqv.com. -- Ed. Defying concerns, Hyundai E&C’s 2Q22 results arrived roughly in line with consensus, helped by a lower-than-feared increase in its COGS-to-sales ratio for domestic housing. We see more positives
The author is an analyst of NH Securities and Investment. He can be reached at yk.choi@nhqv.com. -- Ed. The refining and petrochemical industries both appear to be approaching cycle inflection points. Refining players are seeing valuation de-rating, and petrochemical companies’ valuations look to be
The authors are analysts of Shinhan Investment Corp. They can be reached at jinmyung.lee93@shinhan.com and cgh815@shinhan.com, respectively. -- Ed. 2Q22 OP to exceed consensus at KRW2.16tr (+31% QoQ)SK Innovation is expected to have registered operating profit of KRW2.16tr (+31% QoQ) for 2Q22, beati
The author is an analyst of NH Investment & Securities. He can be reached at pk.park@nhqv.co. -- Ed. Hanmi Pharm posted consolidated 2Q22 sales of W316.5bn and OP of W29.6bn, with OP coming in slightly below our estimate. Beijing Hanmi led consolidated OP growth, booking OP of W17.1bn. The strength
The authors are analysts of Shinhan Investment Corp. They can be reached at jinmyung.lee93@shinhan.com and cgh815@shinhan.com, respectively. -- Ed. 2Q22 OP to exceed consensus at KRW1.55tr (+16% QoQ)S-Oil is expected to have delivered operating profit of KRW1.55tr (+16% QoQ) for 2Q22, beating the co
The authors are analysts of Shinhan Investment Corp. They can be reached at jinmyung.lee93@shinhan.com and cgh815@shinhan.com, respectively. -- Ed. Earnings passing the trough in 2Q22The combined price spread of chemical products, which has been on a downtrend since early this year, fell further in
Daewoo Engineering and Construction (Daewoo E&C) announced on June 27 that it won an oil refinery quick fix project from Warri Refinery & Petrochemical Co. (WRPC), a subsidiary of Nigerian National Petroleum Corp. (NNPC), on June 24.A letter of award (LOA) was signed by Jeong Tae-won, head of Daewoo
Major Korean companies are ramping up their investments in Indonesia, which they regard as a base for advancing into Southeast Asia. Korean companies' investments are made in diverse sectors, including electric vehicles, batteries, petrochemicals, and biotechnology. The Indonesian government is
The author is an analyst of KB Securities. He can be reached at yc.baek@kbfg.com. -- Ed. Maintain BUY, raise target price 10% to KRW165,000 We maintain BUY on OCI and raise our TP by 10% to KRW165,000 on OCI. We revise up 2022E-23E NP (attributable to controlling interests) by 18.7%/8.0% to reflect
The authors are analysts of Shinhan Investment Corp. They can be reached at jinmyung.lee93@shinhan.com and cgh815@shinhan.com, respectively. -- Ed. Chemicals outperform the market on China demand recovery expectationsChemical companies under our coverage recorded an average one-month return of 3%, o
LG Chem announced on June 20 that it will build a hydrogen plant with an annual production capacity of 50,000 tons at its Daesan complex in South Chungcheong Province by the second quarter of 2024. The project is aimed at reducing carbon emissions from a petrochemical pyrolysis process.The hydrogen
The author is an analyst of NH Investment & Securities. He can be reached at minjae.lee@nhqv.com. -- Ed. The near-term rise in fossil fuel prices and the mid/long-term shift towards hydrogen are both positive for Samsung Engineering, as the firm is capable of performing both grey EPC and green EPC p
The author is an analyst of NH Investment & Securities. He can be reached at minjae.lee@nhqv.com. -- Ed. Eastern European countries led by Poland and Czech should begin to place orders for nuclear power projects in earnest in 2H22. Considering its leading position in the industry, Hyundai E&C looks
The author is an analyst of NH Investment & Securities. He can be reached at pk.park@nhqv.co. -- Ed. ctDNA technology a game changerAt this year’s ASCO conference, circulating tumor DNA (ctDNA) was at the center of attention. Though various technological challenges need to be tackled first for full-
The Korea Cargo Workers Union (KCWU) entered the sixth day of strike, and petrochemical companies’ shipments dropped to 10 percent or so of their normal level. On June 12, the Korea Petrochemical Industry Association urged the KCWU to stop its strike. According to it, the average daily shipments are
LG Energy Solution are establishing joint research centers with Korean and foreign universities to accelerate the development of next-generation battery technologies.The company announced on June 7 that it has recently established the MEET Frontier Research Lab (FRL) in cooperation with the Münster
The author is an analyst of NH Investment & Securities. He can be reached at yk.choi@nhqv.com. -- Ed. We view Lotte Chem’s current valuation as being fully reflective of market concerns towards unfavorable industry conditions. Negatives will likely fade by end-1H22. After reaching a bottom in 2Q22 o